Regulatory agencies DOJ and SEC have charged Manish Lachwani for allegedly inflating the Alphabet, Dell and Telstra-backed app testing software developer's revenue.
The founder and CEO of HeadSpin, a US-based developer of mobile app testing software that counts corporates Dell, Telstra and Alphabet as investors, has been charged with fraud in the state of California.
The US Department of Justice (DOJ) and Securities and Exchange Commission (SEC) have charged Manish Lachwani with securities fraud and wire fraud, claiming he falsely inflated the company’s valuation and defrauded investors out of $80m by misleadingly claiming strong and consistent growth in its revenue and customer base.
Founded in 2015, HeadSpin has developed a software platform which allows customers to remotely test their apps on mobile devices across multiple communications networks in different locations around the world.
The SEC’s complaint alleges that Lachwani significantly inflated the value of customer deals and treated potential deal amounts as guaranteed future payments in discussions with customers.
After Headspin’s valuation had grown to over $1bn in a period lasting between…
Fernando Moncada Rivera
Fernando Moncada Rivera is a reporter at Global Corporate Venturing and also host of the CVC Unplugged podcast.
